It's 997 acres, or nothing for Tata Motors

It's 997 acres, or nothing for Tata Motors

Tata Motors is unlikely to scale down its plans and go back to Singur for a smaller plant.

Auto component manufacturers, however, can heave a sigh of relief they will be finally reimbursed for their investments after a three-year wait.

Component makers like Exide Batteries, Sona Koyo and Rico Auto were among the many vendors who had followed the Tatas to set up an ancillary components hub in the disputed 400 acres which was next to the mother plant at Singur.

It's 997 acres, or nothing for Tata Motors

The Tatas had earlier sought a Rs 558-crore (Rs 5.58 billion) compensation from the Left Front government for vacating the entire land parcel.

The Tatas have been consistent with their stand.

At the 2009 annual general meeting held in Mumbai, Ratan Tata had clarified that it was open to the idea of moving back to Singur even when the company's plant had started manufacturing operations in Gujarat.

He had also clarified then that it was not interested in building the plant on a portion of the 997 acres, and instead was keen on getting the entire plot.

It's 997 acres, or nothing for Tata Motors

Asked if Tata Motors would be paying the lease renewal amount every year for the entire 997 acre next year, a company spokesperson said the lease was renewed earlier this year.

The auto vendors are rejoicing the decision.

A Delhi-based auto vendor who had started construction of his plant at Singur before the agitation forced him to leave stated, "We welcome the decision of the West Bengal government. We are happy that the matter is now closed and that we would be reimbursed the amount we had invested there.

"We had moved out of there just after we had erected the columns and laid the foundation. So the monetary setback was not huge".